Sprinkle unflavored gelatin powder over cold water in a small bowl. Let it sit for about 5 minutes until it blooms.

In a medium saucepan, combine heavy cream and granulated sugar. Heat over medium heat, stirring until the sugar dissolves completely, then remove from heat.

Stir in the finely chopped white chocolate into the warm cream mixture. Mix gently until the chocolate is fully melted and smooth.

Add the peppermint and vanilla extracts along with the bloomed gelatin to the creamy mixture. Stir until the gelatin dissolves completely.

Carefully pour the panna cotta mixture into individual serving cups. Refrigerate for at least 4 hours or until set.

Once the panna cotta has set, sprinkle the top with crushed candy canes before serving.